There are 3 main ways to be discharged from a bankruptcy status:

1. By way of discharge in court: the bankrupt may apply to the court to discharge himself from the bankruptcy status. The DGI has to produce a report on the conduct of the bankrupt and cooperation of the bankrupt with the department.

2. By way of annulment: the bankrupt may make an application in court to annul the bankruptcy order under the ground that the debt has been settled fully, or the bankrupt ought not to be made a bankrupt on other grounds.

3. By way of discharge by the DGI: the bankrupt can make an application to the DGI for a discharge under Section 33A of the Insolvency Act 1967. This can only be made after 5 years from the date the bankruptcy order was made, meeting all the required criteria.

Automatic Discharge from Bankruptcy:

A bankrupt will be automatic discharged from the bankruptcy status after three years from the date of filing of the bankrupt’s Statement of Affair, on the conditions that he/she has:

1. achieved an amount of target contribution of his debt;
2. complied with the requirement to render an account and property to the DGI.

The DGI may take into these considerations in setting the target contribution:

1. Amount of the debt of the bankrupt;
2. Current monthly income of the bankrupt;
3. Prospective month income during the bankruptcy period;
4. Earning capacity of the bankrupt
5. Age and work experience;
6. Educational level;
7. Current economic conditions

The DGI will serve a notice of discharge on every creditor not less than 6 months before the expiry of 3 years.

A creditor may, within 21 days of being served such notice, object to the automatic discharge by applying to court on grounds that:

1) the bankrupt has committed offence(s) under the Act, or

2) the discharge would prejudice the administration of the bankrupt’s estate; or

3) the bankrupt has failed to co-operate in the administration of his estate.